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The South still doesn’t have any wind farms — but that’s about to change

The South still doesn’t have any wind farms — but that’s about to change

By on 13 Jul 2015 2:48 pmcommentsShare

How can we make wind power work in the Southeastern U.S.? By reaching higher up into the sky. That’s the strategy Spanish energy developer Iberdrola took with a large-scale wind project in North Carolina that at one point looked like it would have to be nixed.

The project will be the first major wind farm in the South, and, according to The Associated Press, will bring power to 60,000 homes:

After a years-long regulatory process that once looked to have doomed the plan, Iberdrola spokesman Paul Copleman told The Associated Press that construction is to begin in about a month.

Right now, there’s not a spark of electricity generated from wind in nine states across the Southeast from Arkansas to Florida, according to data from the American Wind Energy Association, an industry trade group.

But taller towers and bigger turbines are unlocking new potential in the South, according to the U.S. Department of Energy, and the industry is already looking to invest.

And with the electricity system in the region undergoing a period of change as coal plants are phased out, some experts believe the door is open for renewables like wind.

Wind power, which already accounts for 5 percent of the electricity generated in the U.S., is getting increasingly affordable — and, because of new technologies like larger turbines, viable in regions where it wasn’t before. Many utilities are eyeing wind and solar as alternatives to coal and even to natural gas, long celebrated by the energy industry as the cheapest thing around. “We used to say some day solar and wind power would be competitive with conventional generation,” George Bilicic, an energy expert with the financial advisory firm Lazard, told the Financial Times last year. “Well, now it is some day.”

But Southern states have been slow to adopt renewables. In North Carolina, a renewable energy mandate encourages projects like the Iberdrola one by requiring utilities to draw a certain share of their electricity from clean sources. But that mandate has faced fierce pushback from conservative groups, which have also fought to keep similar green initiatives from expanding to other states. (The irony here is that Southern states build a large number of turbines — but then ship them to other regions.)

And it’s not just wind — the South has lagged on solar too, despite the fact that the region has far more sun than much of the U.S. But that also might be changing — we wrote last week about how a coalition of groups from across the political spectrum is fighting back against anti-solar interests in Florida, one of the only states where citizens are not allowed to buy solar electricity from third parties that install panels on their roofs. At the very least, the campaign seems to be putting solar, and its potential, in the spotlight.

It’s too early to tell whether these small changes in the South amount to any kind of trend. But the Department of Energy believes that 20 percent of America’s power could come from wind by 2030, and that target goal will be a lot easier to hit if the region starts chipping in by greening its energy economy.

Source:
South getting its first wind farm soon as bigger turbines make the region viable

, The Associated Press.

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The South still doesn’t have any wind farms — but that’s about to change

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The Koch Brothers Usually Have Scott Walker’s Back. Not This Time.

Mother Jones

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The Koch brothers and their political machine have long been key allies of Wisconsin governor and presumptive 2016 hopeful Scott Walker. With the GOP presidential field getting more crowded by the day and political observers wondering who will with the Koch Primary—and the financial backing of these billionaires and their donor network—Walker has sparked a controversy in his home state in which and he and Team Koch are on opposite sides.

When Walker announced a plan last week to spend $250 million in taxpayer money for a proposed $500 million basketball arena in downtown Milwaukee, the local chapter of the Koch-founded advocacy group Americans for Prosperity joined the chorus of detractors who condemned the project. The National Basketball Association is demanding the new venue and is threatening that the Milwaukee Bucks franchise may have to move if the arena isn’t built by 2017. This has put Walker in a tough spot. The failure to retain the team would be an ugly black eye for Walker, but the plan to spend taxpayer funds propping up a highly lucrative private business is irritating Wisconsin Republicans and Democrats alike.

While Walker’s forays into union-busting had strong conservative backing, the political dynamics involved in the public financing of sports arenas and stadiums are much different. Across the nation in recent years, conservatives and progressive groups and activists have questioned the notion that financing arenas for lucrative sports franchises with taxpayer funds will spur the local economy. And Walker is feeling the backlash.

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The Koch Brothers Usually Have Scott Walker’s Back. Not This Time.

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The Feds Say One Schmuck Trading From His Parents’ House Caused a Market Crash. Here’s the Problem.

Mother Jones

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Illustration by Giacomo Marchesi

On Tuesday, the Justice Department and the Commodity Futures Trading Commission, a key Wall Street regulator, blasted out press releases declaring a great victory in their war on illegal manipulation of financial markets. The reason for the feds’ braggadocio? They think they’ve caught the guy who caused May 2010’s “flash crash,” a market seizure that vaporized a trillion dollars in shareholder value in a matter of minutes.

Federal regulators say that Navinder Singh Sarao, a 36-year-old British futures trader whose company was reportedly based in his parents’ home, illegally placed huge sell orders he never intended to complete, artificially driving down the price of a key futures contract so he could later swoop in to buy it cheaply. (This is called “spoofing” in financial jargon.) There’s one big problem, though: By charging Sarao with “contributing to the market conditions that caused” the flash crash, federal regulators are changing their story about what really happened to financial markets five years ago.

Here’s the background. In the days and weeks after the flash crash, the Securities and Exchange Commission, alongside other regulators, worked diligently to figure out what had happened. The flash crash was chaos: Liquidity evaporated, the same stocks traded at both a penny and at $100,000, and CNBC hosts freaked out even more than usual. (Prices eventually returned to normal, and the SEC canceled some of the weirdest trades.)

The flash crash was essentially over in five minutes. But it took regulators nearly five months to come up with a theory about what happened. And in late September 2010, when the SEC and the CFTC—the same agency now charging Sarao with causing the crash—released a joint report on what happened, they didn’t mention spoofing, let alone Sarao. Instead, they blamed a large trade by a firm out of Kansas City.

It’s not even clear that the feds’ new explanation is correct. As Matt Levine notes over at Bloomberg View, regulators believe that Sarao continued to place massive fake sell orders in the years after the flash crash, but somehow that activity never triggered another crisis:

If regulators think that Sarao’s behavior on May 6, 2010, caused the flash crash, and if they think he continued that behavior for much of the subsequent five years, and if that behavior was screamingly obvious, maybe they should have stopped him a little earlier?

Also, I mean, if his behavior on May 6, 2010, caused the flash crash, and if he continued it for much of the subsequent five years, why didn’t he cause, you know, a dozen flash crashes?

So I mean…maybe he didn’t cause the flash crash?

But in some ways, it doesn’t particularly matter whether regulators’ new theory is correct. What matters is that it took so long for them to develop it.

As I reported in January 2013, today’s financial markets move so fast that regulators can’t even monitor them in real time, let alone intervene if something starts to go wrong. Sophisticated trading algorithms can buy and sell financial products faster than you can blink—all without human intervention, let alone real-time human judgment. When something does go wrong, it can take months or years to figure out what happened. “A robust and defensible analysis of even a small portion of the trading day can itself take many days,” Gregg Berman, who wrote the 2010 SEC/CFTC report, told me in 2013.

Since real-time intervention by human regulators is impossible, regulators have to rely on automatic measures—fail-safes that stop trading if prices rise or fall too fast, for example. But these sorts of automatic braking systems are, by definition, designed in response to the previous crisis. “We’re always fighting the last fire,” Dave Lauer, a market technology expert who has worked for high-speed trading firms, said in 2013. As I wrote then:

Years of mistakes and bad decisions led to the 2008 collapse. But when the next crisis happens, it may not develop over months, weeks, or even days. It could take seconds.

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The Feds Say One Schmuck Trading From His Parents’ House Caused a Market Crash. Here’s the Problem.

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Does GE Capital’s Demise Mean Financial Reform Is Working?

Mother Jones

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Interesting post today from Paul Krugman about the shadow banking system and GE’s recent decision to get out of the finance biz:

GE Capital was a quintessential example of the rise of shadow banking. In most important respects it acted like a bank; it created systemic risks very much like a bank; but it was effectively unregulated, and had to be bailed out through ad hoc arrangements that understandably had many people furious about putting taxpayers on the hook for private irresponsibility.

Most economists, I think, believe that the rise of shadow banking had less to do with real advantages of such nonbank banks than it did with regulatory arbitrage — that is, institutions like GE Capital were all about exploiting the lack of adequate oversight….So Dodd-Frank tries to fix the bad incentives by subjecting systemically important financial institutions — SIFIs — to greater oversight, higher capital and liquidity requirements, etc.. And sure enough, what GE is in effect saying is that if we have to compete on a level playing field, if we can’t play the moral hazard game, it’s not worth being in this business. That’s a clear demonstration that reform is having a real effect.

Read the whole thing for more.

By the way: On the occasions when I come up for air and write blog posts, I’ll probably mostly be doing stuff like this. That is, quick links to something interesting without much additional commentary.

The reason is fatigue, which is nearly everpresent these days. Physically, this is a nuisance, but not much more. Mentally, though, it’s worse, because it leaves me without the—what’s the right word? Cognitive will? Cognitive ability?—to really think hard about stuff. And without that, I can’t blog much even though typing is, obviously, not a very physically demanding activity.

Still, I continue to keep up as best I can, and I really love to blog. I won’t quite say that being unable to blog is the worst part of this whole chemotherapy thing, but it’s close. I just hate having ideas about the stuff I read but being just a little too foggy to really be sure of my ability to say something useful and coherent about it. So I’ll continue pointing out items that interest me, but mostly leaving it at that.

In case you’re curious, I use crossword puzzles as a sort of rough guide to my mental fatigue level. This afternoon, for example, I finished one. Hooray! That means I’m at least moderately alert. However, it was a Thursday puzzle1 and it took me about three hours to finally get through it. That’s not so great. But who knows? Maybe it was just unusually hard. I’ll try another one tonight.

1For those of you who aren’t into crossword puzzles, the New York Times puzzle gets harder as the week progresses. A Thursday puzzle is a bit of a challenge, but usually not a big one. Good solvers can finish them in 5-10 minutes. For me, it’s usually 15-30 minutes. Three hours is well outside my usual range.2

2Hmmm. On the other hand, maybe this wasn’t my fault. I just checked, and the name of the third baseman in Abbot & Costello’s “Who’s On First?” sketch is indeed “I don’t know.” I kept trying to fit that in somewhere, but the answer in the puzzle was “Tell me something.” Where did that come from?

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Does GE Capital’s Demise Mean Financial Reform Is Working?

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Ex-State Supreme Court Justice: Judicial Elections Are Like "Legalized Extortion"

Mother Jones

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Though they usually don’t get much attention, judicial elections have become just as cutthroat and cash-driven as other political races. To win a judgeship, many candidates must slime their opponents and win the financial backing of often unaccountable interests that may have business before them in court. (Read more in this Mother Jones investigation.)

The amount of money flowing into these races is staggering: State judicial candidates raised $83 million in the 1990s. Yet during the two years 2012 election cycle, they raised more than $110 million—and that doesn’t include outside spending. Altogether, more than $250 million has been spent on judicial races since 2000.

Judges themselves often hate the process of fundraising and mudslinging, but view it as a necessary evil. Sue Bell Cobb, a career judge and the former chief justice of the Alabama Supreme Court, just wrote about her experience for Politico. Her story is worth a full read, but here’s a taste:

While I was proud of the work I did for the next 4 1/2 years, I never quite got over the feeling of being trapped inside a system whose very structure left me feeling disgusted. I assure you: I’ve never made a decision in a case in which I sided with a party because of a campaign donation. But those of us seeking judicial office sometimes find ourselves doing things that feel awfully unsavory.

When a judge asks a lawyer who appears in his or her court for a campaign check, it’s about as close as you can get to legalized extortion. Lawyers who appear in your court, whose cases are in your hands, are the ones most interested in giving. It’s human nature: Who would want to risk offending the judge presiding over your case by refusing to donate to her campaign? They almost never say no—even when they can’t afford it.

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Ex-State Supreme Court Justice: Judicial Elections Are Like "Legalized Extortion"

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7 Reasons America Is Stuck in Never-Ending War

Mother Jones

This story first appeared on the TomDispatch website.

It was launched immediately after the 9/11 attacks, when I was still in the military, and almost immediately became known as the Global War on Terror, or GWOT. Pentagon insiders called it “the long war,” an open-ended, perhaps unending, conflict against nations and terror networks mainly of a radical Islamist bent. It saw the revival of counterinsurgency doctrine, buried in the aftermath of defeat in Vietnam, and a reinterpretation of that disaster as well. Over the years, its chief characteristic became ever clearer: a “Groundhog Day” kind of repetition. Just when you thought it was over (Iraq, Afghanistan), just after victory (of a sort) was declared, it began again. Now, as we find ourselves enmeshed in Iraq War 3.0, what better way to memorialize the post-9/11 American way of war than through repetition. Back in July 2010, I wrote an article for TomDispatch on the seven reasons why America can’t stop making war. More than four years later, with the war on terror still ongoing, with the mission eternally unaccomplished, here’s a fresh take on the top seven reasons why never-ending war is the new normal in America. In this sequel, I make only one promise: no declarations of victory (and mark it on your calendars, I’m planning to be back with seven new reasons in 2019).

1. The privatization of war: The US military’s recourse to private contractors has strengthened the profit motive for war-making and prolonged wars as well. Unlike the citizen-soldiers of past eras, the mobilized warrior corporations of America’s new mercenary moment—the Halliburton/KBRs (nearly $40 billion in contracts for the Iraq War alone), the DynCorps ($4.1 billion to train 150,000 Iraqi police), and the Blackwater/Xe/Academis ($1.3 billion in Iraq, along with boatloads of controversy)—have no incentive to demobilize. Like most corporations, their business model is based on profit through growth, and growth is most rapid when wars and preparations for more of them are the favored options in Washington.

“Freedom isn’t free,” as a popular conservative bumper sticker puts it, and neither is war. My father liked the saying, “He who pays the piper calls the tune,” and today’s mercenary corporations have been calling for a lot of military marches piping in $138 billion in contracts for Iraq alone, according to the Financial Times. And if you think that the privatization of war must at least reduce government waste, think again: the Commission on Wartime Contracting in Iraq and Afghanistan estimated in 2011 that fraud, waste, and abuse accounted for up to $60 billion of the money spent in Iraq alone.

To corral American-style war, the mercenaries must be defanged or deflated. European rulers learned this the hard way during the Thirty Years’ War of the seventeenth century. At that time, powerful mercenary captains like Albrecht von Wallenstein ran amok. Only Wallenstein’s assassination and the assertion of near absolutist powers by monarchs bent on curbing war before they went bankrupt finally brought the mercenaries to heel, a victory as hard won as it was essential to Europe’s survival and eventual expansion. (Europeans then exported their wars to foreign shores, but that’s another story.)

2. The embrace of the national security state by both major parties: Jimmy Carter was the last president to attempt to exercise any kind of control over the national security state. A former Navy nuclear engineer who had served under the demanding Admiral Hyman Rickover, Carter cancelled the B-1 bomber and fought for a US foreign policy based on human rights. Widely pilloried for talking about nuclear war with his young daughter Amy, Carter was further attacked for being “weak” on defense. His defeat by Ronald Reagan in 1980 inaugurated 12 years of dominance by Republican presidents that opened the financial floodgates for the Department of Defense. That taught Bill Clinton and the Democratic Leadership Council a lesson when it came to the wisdom of wrapping the national security state in a welcoming embrace, which they did, however uncomfortably. This expedient turn to the right by the Democrats in the Clinton years served as a temporary booster shot when it came to charges of being “soft” on defense—until Republicans upped the ante by going “all-in” on military crusades in the aftermath of 9/11.

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7 Reasons America Is Stuck in Never-Ending War

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Elizabeth Warren to Obama Administration: Help Me Tackle Student Debt

Mother Jones

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Sen. Elizabeth Warren (D-Mass.) isn’t just a thorn in the side of Wall Street banks. She’s also happy to go head-to-head with the Obama administration when she feels the president’s team is part of the problem.

Right now, the issue fueling a dispute between Warren and the White House is student loan debt. Last week, Warren sent a letter to Education Secretary Arne Duncan alleging that his department is not using many of the tools at its disposal to help Americans who are struggling to pay back student loans. In particular, the department has authority to help students duped by predatory for-profit colleges, and Warren says they’re not using it.

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Elizabeth Warren to Obama Administration: Help Me Tackle Student Debt

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A Baton Rouge ER Is Closing Because Bobby Jindal Won’t Accept Medicaid Expansion

Mother Jones

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Louisiana’s capital city is losing one of its emergency rooms:

The Baton Rouge General Medical Center-Mid City will close its emergency room within the next 60 days, a victim of continuing red ink and the Jindal administration withdrawing the financial support that kept it open.

….The General’s Mid City campus suffered a financial hit as a result of the April 2013 closure of the LSU Earl K. Long Medical Center….More and more poor and uninsured patients from the low-income neighborhoods of north Baton Rouge ended up at the Mid City hospital, which was the next-closest facility.

Mid City hospital reported losses of $1 million a month as more and more patients who could not pay arrived. Losses jumped from $6 million to $8 million annually from 2009 to 2012, then up to $12.5 million in 2013, according to Baton Rouge General. Last year, the facility lost $23.8 million.

The nearest ER for residents who are currently served by Mid-City is now 30 minutes further away, and it’s a certainty that people are going to die because of this. But what’s the real story behind this closure? Shouldn’t the expansion of Medicaid be offsetting the increased losses on uninsured patients?

You bet it should. And it would, if Bobby Jindal were willing to accept Obamacare’s offer of virtually free Medicaid expansion. But he’s not, and that means Baton Rouge is losing one of its central emergency rooms and more people will die who otherwise could have been saved. That’s some nice work, Bobby. Michael Hiltzik has more details here.

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A Baton Rouge ER Is Closing Because Bobby Jindal Won’t Accept Medicaid Expansion

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Now BP and Shell will consider the cost of climate change when doing business

Now BP and Shell will consider the cost of climate change when doing business

By on 6 Feb 2015commentsShare

BP will support a shareholder resolution calling on the company to release information about how climate change could affect its business. It’s the second big win for climate-conscious investors this year: Shell agreed to support a similar resolution last week.

Both the Shell and BP resolutions were submitted by a coalition of activist investor groups representing more than 150 major shareholders in Europe and America, including the U.K.’s Environment Agency and the Church of England, for a combined $300 billion in assets.

The resolution asked Shell and BP to reduce emissions, to invest in renewables, to provide transparency about bonuses that reward “climate-harming activities,” and to test how their business models would hold up if governments were to take action to limit global warming to 2 degrees Celsius. These steps are good business, the resolution argues, “given the recognised risks and opportunities associated with climate change.”

Analyses suggest that in order to stay below the 2 degree level, much of the fossil fuel in the ground will have to stay there — including all of the oil remaining in the Arctic, which both Shell and BP are hoping to tap. If governments take more stringent action to confront climate change, these resources could end up stranded, despite the high value oil companies place on them. That’s led some, like U.N. climate chief Christiana Figueres, to suggest that investors in extractive industries should worry about a “carbon bubble.”

“Climate change is a major business risk,” said James Thornton, CEO of ClientEarth, one of the investor groups behind the push, when the resolutions were filed last month. “BP and Shell hold our financial and environmental future in their hands. They must do more to face the risks of climate change. Investors can help them by voting for these shareholder resolutions.”

JJ Traynor, Shell’s executive vice president of investor relations, sent a letter on Jan. 29 to shareholders in the company urging them to support the resolution. And yesterday, Reuters reported that a spokesperson for BP said his company would also support the resolution. “We consider the resolution to be non-confrontational, and it gives us the opportunity to demonstrate our current actions and build on our existing disclosures in this area,” the spokesperson said in an email.

Elspeth Owens, a representative of ClientEarth, called BP’s decision “great news” and said that the victory “confirms the potential of shareholder engagement.”

Both oil companies rank among the largest, by revenue, in the world. Investor activists withdrew a similar resolution filed with ExxonMobil last year after the company agreed to publish publicly a report on how future regulations, like carbon pricing, could affect its bottom line. (If you’re curious, ExxonMobil more or less said regulations won’t affect that bottom line much at all, really, because regulations aren’t actually coming. Ben Adler summarized the company’s position thusly: “Governments will allow us to keep extracting and burning fossil fuels because the economy.”)

As for BP and Shell, both resolutions still have to be voted on by their shareholders. BP will recommend that its investors support the resolution at a meeting on April 16. Shell, meanwhile, is encouraging shareholders to vote for the resolution at its annual general meeting in May.

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Now BP and Shell will consider the cost of climate change when doing business

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Here’s the Big Problem With Liberals’ "Middle Class" Agenda

Mother Jones

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President Obama recently advanced two proposals designed to help the middle class—part of a middle-class agenda that’s recently become something of a liberal rallying cry for the 2016 election. The first proposal was a mortgage plan available to anyone who bought a home. The second was a college tuition plan that would have helped middle-income workers with money saved by eliminating 529 college savings plans.

The mortgage plan has met with considerable enthusiasm. The tuition plan, by contrast, flamed out within days and has already been withdrawn. Mechele Dickerson comments:

While both of these proposals ostensibly targeted the middle class, the mortgage plan was lauded because its financial relief applies to all homeowners, regardless of how much they earned. The 529 proposal, by contrast, was doomed because of a fatal flaw: it actually tried to provide relief for just the middle class, carving it out by income.

The success of one and not the other was actually quite predictable. The mortgage proposal, though modest, was welcomed because it was designed to make it easier and cheaper for families to buy homes. Republicans, Democrats, Americans and the financial entities that benefit all agree that any plan that increases homeownership rates is good, even if most of the benefits go to higher-income households and barely reach the middle class.

….The same is true with 529 plans….Fewer than 3 percent of families save for college using 529 plans, according to Federal Reserve data….Since it’s the richest who have the largest accounts, most of the benefits of the tax break go to them. While the average account has about $20,000 in it, the accounts of the top 5 percent average more than $106,000.

This highlights one of the fundamental problems of liberal attempts to help the middle class. In theory, universal programs like Obama’s mortgage plan are designed to help the middle class, and this is what makes them both popular and politically palatable. In practice, though, the bulk of their benefits usually go to the well off, and this is what really makes them politically palatable. That’s why the tuition program met an instant death. It really did help the middle class—and only the middle class—and this meant it lacked the all-important political support of the well off. In fact, since the well off would be losing a benefit to pay for it, it attracted their instant opposition. And that was that.

As Dickerson says, the problem here is that the American definition of “middle class” is so broad. We basically have the poor on one end and the 1 percent on the other, and everyone in between considers themselves middle class. So if you say your program helps the middle class, it needs to help virtually everyone—including lots of people who make an awful lot of money. It’s a good bet that virtually all of those folks with $106,000 in their 529 accounts think of themselves as middle class even if they earn well more than six-figure incomes.

Needless to say, this makes “middle class” programs really expensive. In practice, they have to be effectively universal, and since benefits often scale with income (as with tax deductions and savings plans), including the top 5 percent of the income ladder in these programs balloons their price tag by a whole lot more than 5 percent.

There are answers to this. You can offer tax credits rather than tax deductions. You can cap savings programs. But if you do very much of this, you effectively eliminate benefits for the well off and you lose their support. And as plenty of research has shown, it’s the well off who really have political clout. This means you have to buy them off if you want to do something for the middle class, and that makes “middle class programs” a lot pricier than you’d think. It’s something that any liberal agenda to help the middle class is going to have to figure out.

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Here’s the Big Problem With Liberals’ "Middle Class" Agenda

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